Alberta farmland prices rise again

Farmland prices in Canada are “once again showing modest increases” in the first half of the year — except in Alberta and Saskatchewan, according to the latest report from Farm Credit Canada.

While the national average increase was 3.7 per cent, Alberta saw a jump of 8.5 per cent in the 12 months ending in June (versus 3.3 per cent in 2019) and Saskatchewan prices went up 7.9 per cent (versus 6.2 per cent in 2019).

FCC cites low interest rates, limited supply, and “confidence among producers in the farmland market” as the main drivers. But J.P. Gervais, the lender’s chief economist, said would-be buyers should exercise caution “especially in regions where the growth rate of farmland values significantly exceeded that of farm income in recent years.”

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